Author Question: Kelly Andrews owns a company that makes office furniture. Recently, a favorable article was written ... (Read 112 times)

joe · **on:** Jul 6, 2018

Kelly Andrews owns a company that makes office furniture. Recently, a favorable article was written about Kelly's company in a business magazine, and as a result, Kelly has seen a spike in his orders.

Although Kelly is grateful for the additional orders, he is worried about one thing. An increase in activity means that his firm must handle more service requests and paperwork and contend with more customers, stakeholders, and vendors. Kelly knows that if he doesn't handle this increased activity properly, the workmanship of his products could decline. The day-to-day challenge of firm growth that this example illustrates is ________.
A) quality control
B) price stability
C) capital constraints
D) benchmarking
E) cash flow management

Question 2

The pro forma ________ provides a firm a sense of how its activities will affect its ability to meet its short-term liabilities and how its finances will evolve over time.

A) balance sheet
B) statement of cash flows
C) income statement
D) expense statement
E) statement of owners' equity